SHANGHAI, Feb. 27 (SMM) – The most active SHFE 1305 zinc contract advanced to RMB 15,580-15,590/mt along with LME zinc price hike, and hit a high of RMB 15,635/mt after opening at RMB 15,550/mt on Tuesday. However, during the afternoon trading hours, LME zinc prices fell steadily as concern over the political condition in Italy exacerbated. In addition, Asian stock markets also fell, with the Shanghai Composite Index falling to test 2289.89 points, down 1.4%. SHFE zinc prices were thus weighed down. Finally, SHFE zinc prices closed at RMB 15,540/mt, down RMB 10/mt, or 0.06%. Trading volumes decreased by 4,345 lots to 73,640 lots, and positions added by 3,376 lots to 123,494 lots.
Traded prices for #0 zinc in spot market were largely between RMB 15,290-15,300/mt, with spot discounts over the 1305 SHFE zinc contract between RMB 280-300/mt. Traded prices for #1 zinc were around RMB 15,260/mt. Some smelters were reluctant to move goods at low prices, while downstream producers purchasing interest was low amid price decline, leaving trading sentiment quiet in the market.